Shanghai and Hong Kong-based Fullgoal Fund Management has introduced a new ETF on the Shenzhen Stock Exchange, the Fullgoal HangSeng China Corp ETF (159963).

The Hang Seng China Enterprises Index is formed of 50 large-cap Chinese equities listed in Hong Kong.

The ETF tracks the Hang Seng China Enterprises Index (HSCEI).

The HSCEI is formed of 50 equity securities and offers broad exposure to large-cap Chinese companies listed on the Hong Kong Stock Exchange.

The securities are split between 40 H-shares and a total of 10 Red-chips and P-chips. These share classes differ with respect to where companies are incorporated.

H-shares are shares in companies incorporated in mainland China, while Red-chip and P-chip companies are both formed outside mainland China. P-chip companies are incorporated specifically in the Cayman Islands, Bermuda and the British Virgin Islands, and are private sector businesses operating in mainland China.

The index is weighted by free float-adjusted market cap and is currently heavily weighted to the financial sector with 22 of the 50 companies representing a combined 55.6% of its total market cap, as of 28 February 2019. Financial stocks also make up the top three constituent weightings: with CCB, Ping An, and ICBC each accounting for around 10%.

Energy stocks constitute the second largest sector weighting with a combined 11.1% spread over four companies, the largest of which is CNOOC with 3.7%.